- Nova Minerals (NVA) has completed a share placement to sophisticated and institutional investors, after successfully raising $21 million
- The company issued just over 123.5 million of its ordinary shares at a price of 17 cents per share through the placement
- The proceeds will fund ongoing drilling at the company’s Estelle Gold Project in Alaska
- A portion of the funds raised will also go towards completing a preliminary economic assessment and pre-feasibility study for the project
- Nova Minerals closed 8.89 per cent in the red for 20.5 cents per share
Nova Minerals (NVA) has completed a share placement to sophisticated and institutional investors, after successfully raising $21 million.
Earlier this week, the mineral explorer entered back-to-back trading halts as it announced plans to execute a capital raise.
Through the placement, the company issued 123,529,412 ordinary shares at a price of 17 cents each. Those shares are expected to settle on or around Tuesday, December 1, 2020.
Nova Minerals will use the proceeds to ramp up development and resource growth as the company advances towards gold production. In particular, the proceeds will fund ongoing discovery drilling at deposits on the company’s Estelle Gold Project in Alaska, such as the Korbel Main deposit.
Some money will also go towards completing a preliminary economic assessment and pre-feasibility study for the project. The company expects to lower drilling costs by establish ing core-crushing infrastructure onsite.
Approximately $2.7 million of the $21 million raised will go towards covering the costs of the offer, and general working capital.
Nova Minerals’ CEO, Christopher Gerteisen, said that the capital raise will allow the company to maintain momentum as it unlocks the full value of a district scale asset.
“Nova has never been better placed to achieve our goal of progressing Korbel Main to production, whilst concurrently unlocking the Estelle gold district,” he said.
“By implementing our dual exploration and development strategy, we will seek to maximise our ability to create value for shareholders through both resource growth and project development,” he added.
Nova Minerals closed 8.89 per cent in the red for 20.5 cents per share.